Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1]. Core Insights - The public fund fee reform's third phase has commenced, and listed insurance companies continue to increase their allocation to OCI stocks [1]. - The non-bank financial sector has shown a decline of 5.05% recently, underperforming the CSI 300 index, which fell by 0.81% [10]. - The insurance sector's net profit has generally increased, with a notable growth in new business value (NBV) for life insurance [24][25]. - The securities sector has experienced a significant increase in trading volume, with a year-on-year rise of 223.25% in daily average stock trading value [16]. - The multi-financial sector is transitioning into a stable growth phase, with trust assets continuing to grow despite a decline in profits [35]. Summary by Sections Non-Bank Financial Sector Performance - All sub-sectors of non-bank financials underperformed the CSI 300 index in the recent five trading days, with declines of 4.07% in insurance, 5.29% in securities, and 6.32% in multi-financials [10][12]. Securities Sector - Trading volume has significantly increased, with a daily average stock trading value of CNY 29,496 billion as of September 5, 2025, marking a 223.25% increase year-on-year [16]. - The margin balance reached CNY 22,795 billion, up 63.74% year-on-year [16]. - The average price-to-book (PB) ratio for the securities industry is projected at 1.3x for 2025 [22]. Insurance Sector - Listed insurance companies reported a total net profit of CNY 1,782 billion for the first half of 2025, reflecting a 3.7% year-on-year increase [24]. - The NBV for life insurance has shown substantial growth, with increases of 20% to 72% across major companies [25]. - The insurance sector's valuation is currently between 0.62-0.93 times the expected P/EV for 2025, indicating a historical low [34]. Multi-Financial Sector - The trust industry saw its asset scale reach CNY 29.56 trillion by the end of 2024, a 23.58% increase year-on-year, despite a 45.5% drop in total profits [35]. - The futures market experienced a trading volume of 10.59 billion contracts in July 2025, with a transaction value of CNY 71.31 trillion, representing year-on-year growth of 48.89% and 36.03%, respectively [41]. Industry Ranking and Recommendations - The report ranks the sectors as follows: Insurance > Securities > Other Multi-Financials, with key recommendations including China Ping An, New China Life, China Pacific Insurance, CITIC Securities, Tonghuashun, and Jiufang Zhitu Holdings [51].